Real interest rate
An interest rate minus inflation. It shows what borrowing really costs once rising prices are taken into account.
Example
ECB rate 2.50% − euro area inflation 3.8% = a real rate of −1.3%.
Explained in
An interest rate minus inflation. It shows what borrowing really costs once rising prices are taken into account.
ECB rate 2.50% − euro area inflation 3.8% = a real rate of −1.3%.